State Legislation: Bill Amendments · April 6, 2026 · Primary source
OR HB 4039: new version, HHC Amendment -1
Summary
Oregon HB 4039, signed by the Governor on March 31, 2026, and effective that same date as Chapter 32 of 2026 Laws, enacts several immediate changes to the state Medicaid program. The law requires the Oregon Health Authority to prepare a medical assistance cost impact statement before adopting non-procedural rules, imposes a temporary prohibition on new rules or contractual requirements costing $1 million or more per biennium (sunsetting January 2, 2028), and requires the Authority to develop a transparent, data-driven capitation rate process for coordinated care organizations with an independent review and public comment mechanism. The law also imposes a three-year moratorium on the requirement that coordinated care organizations spend a portion of annual net income or reserves on addressing health disparities and social determinants of health.
What this may mean
Coordinated care organizations operating under Oregon Medicaid contracts are immediately relieved of the health-disparities spending requirement for three years and face a moratorium on new program or contractual cost obligations exceeding $1 million per biennium, effective March 31, 2026. The Oregon Health Authority is now legally required to conduct a cost impact analysis before promulgating non-procedural Medicaid rules and must commission an independent review of its capitation rate development process, altering the rulemaking and rate-setting environment for all Medicaid managed care contracting in Oregon. These changes directly affect budget planning, contract compliance, and rate negotiation for Oregon Medicaid managed care plans and their provider networks.
Informational only. Not legal, medical, financial, or other professional advice. Always consult a qualified professional familiar with your specific facts before relying on any item.
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